Batteries

Cost to Replace an Electric Car Battery

Cost to Replace an Electric Car Battery

As mentioned before, you may not need to replace your electric car battery at all. As battery life keeps improving in newer cars, the issue of replacing the battery will become less and less important. In 2019, Tesla announced that it was working on a “million-mile battery” which would likely never need to be replaced.

That said, if you have an older electric car, the battery could eventually require replacing.

Experiencing Battery Failure

If your failing battery is under warranty, you should get it repaired or replaced at a manufacturer-approved repair shop. If you request service from a third party who is not approved by the manufacturer, you may void the warranty and expose yourself to substandard workmanship.

If your battery fails outside of the warranty conditions, select dealers and service centers would be able to repair or replace it for you. The cost of repairing/replacing the battery can be broken out into (1) the cost of the replacement battery itself and (2) the cost of the installation.

Cost of Replacement

As the cost of batteries decreases, so does the cost of replacement. The key driver of battery cost is the cost per kilowatt-hour, the unit for energy stored in the battery. Broadly speaking, this cost is in the range of $100 to $300 per kilowatt-hour, depending on the manufacturer. The following price points have been reported recently in 2020:

  • Nissan LEAF, 40 kWh battery, ~$5,500, equivalent to ~$137/kWh
  • Chevrolet Volt, 16 kWh battery, ~$4,000, equivalent to ~$250/kWh
  • Chevrolet Bolt, 66 kWh battery, ~$16,000, equivalent to ~$240/kWh
  • Tesla is rumored to be producing their Li-ion batteries at $125/kWh

Installation costs cover the labor and equipment required to install the new battery. From a labor perspective, the work can take 3-5 hours. Altogether, the installation cost can run from $1,000 to $5,000.

Read our guide on the Afterlife of EV Batteries to learn how EV batteries continue to add value long after their original intended use.